An Australian member of parliament has urged the government to consider how its controversial regulatory changes are impacting on the lives and business's of the nation's financial advisers.
Australian federal member for Warringah Zali Steggall has written to government's treasurer Josh Frydenberg backing advisers and requesting an extension to education reforms.
Steggall wrote that the rise in the number of regulatory changes recently implemented are causing much distress to advisers and the cost of compliance could the impact on accessibility to financial advice in the broader community, stating: "The recommendation by ASIC that advisers work on a strictly hourly basis with clients is of concern as it may lead to inefficiencies and increased cost to customers."
In the letter dated 19 November 2019 and published in various local reports, she asked the treasurer to consider allowing an extension to complete the financial adviser exam to 31 December 2021 and to complete the Graduate Diploma by 31 December 2025.
Advisers based in Steggall 's region Warringah, have told her that they are concerned about the additional study they have to under the Financial Adviser Standards and Ethics Authority changes.
"Older advisers entered the profession at a time when degrees were uncommon and courses from that time are now not recognised by FASEA," Steggall wrote.
"In the case of specialist advisers, they are being asked to undertake study in areas which will deliver little value to the adviser, their business or their clients. That risk advisers who deal only with life cover, income protection, trauma cover etc. need not participate in areas covered in the new courses such as financial markets, financial products, Centrelink, estate planning and tax."
Steggall added that the group of her constituents in the advisory community have expressed concern over the recommendation from the Royal Commission that grandfathered remuneration be brought to an end.
"Any policy or recommendation to amend or remove grandfathered commissions requires an extended time-frame to allow advisers to adapt their businesses."